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Auditor general criticises ‘irregular’ Industry Wales accounts

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THE AUDITOR general sounded the alarm about the “irregular” accounts of a wholly Welsh Government-owned company, warning of a lack of evidence to support financial claims.

Adrian Crompton took the extraordinary step of stating he could not form an audit opinion on Industry Wales, the trading name of Sector Development Wales Partnership Ltd (SDWP).

Industry Wales, which aims to provide expert advice and support to grow “Wales plc”, has received about £9.7m from the public purse in the past decade, according to accounts.

Mr Crompton said: “This is a highly unusual position whereby I am stating that I am unable to provide either a ‘true and fair’ or ‘regularity’ opinion on the accounts as I have been unable to obtain sufficient, appropriate evidence over material assets.”

In a letter to the Senedd public accounts committee, he wrote: “Unfortunately, this inability to obtain sufficient, appropriate evidence applied to multiple connected parts of the accounts.”

The auditor general concluded: “The impact is so significant and pervasive in the context of SDWP’s accounts that I am unable to give an opinion at all.”

Industry Wales – a relatively small umbrella organisation for forums in key sectors such as aerospace, net zero and the automotive industry – has an annual budget of about £1m.

In a disclaimer on the 2024 accounts, Mr Crompton pointed out that the company failed to follow the Welsh Government’s own procurement law in awarding a contract in 2021/22.

The company, which was set up by ministers in Cardiff Bay in 2013, has spent more than £1m on an automated decorating, cutting and packing line which is not yet operational.

The firm entered into a contract with Llanelli-based manufacturer EBS Automation which scored second on price in the non-compliant procurement process.

Mr Crompton said Industry Wales claims to have assets valued at more than £1m but the bulk comes from the packing line, with indications it may have significantly impaired value.

Declaring £829,000 of the spending to be “irregular”, the auditor general also warned of a lack of robust record keeping and accounting controls for another £217,967 of assets.

The audit, which had an initial deadline of December 31, was delayed until late February due to “significant deficiencies” in obtaining the required evidence.

But Mr Crompton, an ex-senior civil servant in the Senedd, remained unable to complete the work he was appointed to undertake on the 2024 accounts which showed a £35,000 loss.

The arm’s-length body is chaired by Professor Keith Ridgway and run by chief executive Dr Jenifer Baxter, who are experts in manufacturing and sustainability respectively.

Directors’ remuneration has totalled £245,000 over the past two financial years and the Bridgend-based company employs three to four people, according to accounts.

Mark Isherwood, the Tory chairman of the public accounts committee, said: “It is a matter of concern that the auditor general has ‘disclaimed’ his audit opinions on these accounts.”

The north Walian added: “This is a highly unusual position and there are questions that need to be asked as to why this has occurred. The public accounts and public administration committee will be discussing this matter on Thursday.”

Industry Wales and the Welsh Government were invited to comment.

 

Business

Wolfscastle spa earns prestigious AA recognition

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WOLFSCASTLE COUNTRY HOTEL and Spa in Pembrokeshire is celebrating national recognition after its luxury spa was included in the prestigious AA Recommended Spa Awards.

The accolade highlights the hotel’s commitment to delivering high-quality wellbeing experiences, exceptional service, and first-class facilities.

The AA Recommended Spa status is awarded to venues that provide an outstanding guest experience, combining professional expertise, premium treatments, and a relaxing environment. The recognition places Wolfscastle among a select group of leading spa destinations across the UK.

Grace, Levi and Bethan, full-time spa therapists at the award-winning Wolfscastle Spa.
Hot stone massage in the Wolfscastle Country Hotel & Spa treatment room.

The spa, which has been open for nine years, has established itself as one of Pembrokeshire’s top wellness destinations, welcoming both hotel guests and day visitors seeking relaxation in a tranquil countryside setting.

Facilities include hydrotherapy experiences, thermal suites, and dedicated relaxation areas, alongside a wide range of luxury treatments designed to help guests unwind and recharge.

Bethan, Spa Manager at Wolfscastle Country Hotel & Spa, said: “We’re absolutely delighted to be recognised by the AA as a Recommended Spa. The team here work really hard to make sure every guest feels relaxed, welcomed and properly looked after from the moment they arrive.

“To receive this recognition is very special for us and reflects the care and effort our therapists put into every treatment.”

The award further strengthens the hotel’s reputation as one of West Wales’ leading hospitality destinations, offering award-winning dining, boutique accommodation, and premium wellness experiences.

Guests can enjoy spa days, overnight breaks, and tailored treatments throughout the year.

For more information or to book, visit www.wolfscastle.com.

The hotel is also marking a significant milestone this year, with owner Andrew Stirling celebrating 50 years at the helm.

 

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Business

Pembroke South Quay boat shed expansion plans submitted

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A PADDLEBOARDING and canoeing company’s call for an extension to a boat shed at Pembroke’s South Quay, below its historic castle, has been submitted to county planners.

In an application to Pembrokeshire County Council, G Booth of Paddle West CIC, through agent James Dwyer Associates, seeks permission for an extension to the stone-built boathouse, adjacent to the cliff on South Quay fronting the Mill Pond, Pembroke.

A supporting statement says: “It is intended to erect a single storey ‘lean-to’ building, or ‘shed’ for the storage of boats, such as canoes and kayaks, and related equipment, on a vacant space adjacent to the existing stone-built boathouse.”

It adds: “The boathouse and the intended adjacent boat storage shed is located, as is to be expected, in close proximity to water, the Mill Pond. The Mill Pond is the main area of activity for Paddle West, a Community Interest Company, providing boating activities, kayaking, canoeing and paddle boarding, frequently for young people and families.”

It goes on to say: “It is intended that the structure would be lightweight, erected on the exiting hard standing. The ‘shed’ would be used for the storage of boats and related equipment.”

With regard to the historic setting, it adds: “Although the stone-built boathouse appears not to be listed, it is recognised that the walls above are listed and together they are a piece.

“Accordingly, through form and external materials proposed, timber cladding and profile sheet roofing, the aim is to ensure that the structure would be subservient and muted and not detract or compete with the visual aesthetic of the boathouse or historic walls. In effect the addition would blend into the background.”

The application will be considered by county planners at a later date.

The boathouse is sited near to the new Henry Tudor Centre in South Quay, which is due to open in Spring 2027.

The centre, expected to receive around 30,000 visitors a year, will tell the story of Henry Tudor, son of Pembroke, his Welsh ancestry and his impact on our national story, Welsh culture and our wider British heritage.

The restored derelict South Quay buildings will also house a new library and community café, and a healthcare, social services and supported employment facility in the adjoining premises.

 

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Business

Pembrokeshire hospitality rates relief scheme backed

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A WELSH Government-funded scheme to provide rates relief for hospitality businesses has been backed by senior Pembrokeshire councillors.

A report for members of Pembrokeshire County Council’s Cabinet at their March meeting said: “Welsh Government has introduced the Food and Drink Hospitality Rates Relief, this relief is aimed at eligible businesses in Wales in the food and drink hospitality sector for example, pubs, restaurants, cafes, bars and live music venues.

“The aim of the relief is to support eligible businesses to manage continued cost pressures. The relief will apply to all eligible occupied properties by offering a discount of 15 per cent on non-domestic rate bills for the period April 1 to March 31, 2027. The relief is capped at £110,000 per business across Wales.

“As this is a temporary measure, Welsh Government is providing the relief by reimbursing local authorities that use their discretionary relief powers under Section 47 of the Local Government Finance Act 1988.”

It concluded: “The food and drink hospitality rates relief 2026-27 requires the local authority to adopt a discretionary scheme [as outlined] and in accordance with the criteria and conditions specified in the guidance issued by Welsh Government.

“It is proposed that Cabinet resolve to adopt [the scheme] which can be applied to administer the relief. Welsh Government will reimburse local authorities for the relief provided in line with their guidance via a grant under section 31 of the Local Government Act 2003.”

Members backed the recommendation.

All eligible businesses must apply for this relief by the March 31, 2027, and an application form will be available on the council’s website from the April 1.

The maximum cash value of the rates relief allowed, across all properties in Wales occupied by the same business should not exceed £110,000. Businesses claiming the relief must declare that the amount being claimed does not exceed those limits.

 

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